This is a proposal to cease the distribution of weekly $RARI rewards to applications building on the protocol.
Currently, there are over $900,000 USD equivalent in $RARI rewards being distributed every week, mainly to artists and collectors on Rarible.com. Although this was a great way to bootstrap buying and selling on Rarible.com in 2020, this rewards mechanism is no longer an effective tool. Wash trading is a rampant problem, but ultimately, it is a poor allocation of resources. In addition, a huge portion of $RARI recipients actually SELL their $RARI following the drop, which has negative pressure on the $RARI price.
As we transition to funding more projects (see proposal here), we need to start thinking about the best use of $RARI, such that our token economy doesn’t get crippled.
Onwards, and upwards, my friends.